(Boursier.com) — Euroapi is the dunce cap of the day on the Parisian market with a title that plunges 14% to 14.7 euros. After identifying certain deviations from good manufacturing practices for certain prostaglandins, relating to the management of documentation, at its Budapest site, a temporary suspension of production was put in place. A decision which forced the world number 1 in active pharmaceutical ingredients to revise downwards its financial forecasts for the current year. Sales are now expected at 980 ME, against 1 MdE previously, with an EBITDA margin of 12-13% against an initial guidance of at least 14%.
This announcement is logically bad news for the group, says Oddo BHF. The theme of manufacturing risk is, in fact, one of the main risks incurred by players in the sector. Bearing in mind that the press release does not give a clear timetable for the resumption of activity (“a few weeks”) as well as the recent performance of the title, the broker had anticipated this strong pressure on the course on Wednesday. He nevertheless reiterates his ‘outperformance’ opinion on the stock and emphasizes that the suspension only concerns prostaglandins and does not impact the site’s other activities and that the medium-term guidance is not impacted (an EBITDA margin of more than 20%).
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